FOR
IMMEDIATE RELEASE
ATTENTION:
FINANCIAL AND BUSINESS EDITORS
|
Contact:
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Martin
A. Dietrich, CEO
|
Michael
J. Chewens, CFO
NBT
Bancorp Inc.
52
South
Broad Street
Norwich,
NY 13815
607-337-6119
NBT
BANCORP INC. ANNOUNCES PRELIMINARY FOURTH QUARTER AND ANNUAL RESULTS
NORWICH,
NY (January 15, 2008) – NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today
that it expects to report diluted earnings per share of $0.28 and $1.51 for
the
three and twelve months ended December 31, 2007, respectively. These
preliminary results include a provision for loan and lease losses for the
three
months ended December 31, 2007 of $13.4 million. This provision
compares to the provision for loan and lease losses of $4.8 million for the
third quarter of 2007 and $3.5 million for the fourth quarter of 2006.
Within
the $13.4 million of provision for loan and lease losses during the fourth
quarter was approximately $8.6 million related to one large commercial
loan. During the quarter, $6.0 million of the loan was charged
off. As the Company previously disclosed in its Form 10-Q for the
quarter ended September 30, 2007, this loan was current as of September 30,
2007, but subsequently became past due 30 days for the first time, and was
being
closely monitored.
Based
on
these preliminary results, the Company expects the allowance for loan and
lease
losses to total loans to be 1.57% at December 31, 2007, as compared to 1.60%
at
September 30, 2007 and 1.48% at December 31, 2006. The allowance for
loan and lease losses to nonperforming loans was 177%, 178%, and 330% at
December 31, 2007, September 30, 2007, and December 31, 2006,
respectively. Nonperforming loans remained relatively flat from
the last quarter at approximately $30.6 million at December 31, 2007 as compared
to $30.7 million at September 30, 2007. In addition, potential
problem loans decreased to $73.3 million at December 31, 2007 as compared
to
$80.6 million at September 30, 2007, but up from $69.8 million at December
31,
2006. For additional information, see the selected financial
information below.
NBT
President and CEO Martin A. Dietrich
said, “While
our nonperforming loans were
consistent with the previous quarter, the potential problem loans in our
portfolio decreased 9% from the third quarter and are now consistent with
the
first half of the year. We remain confident
that our
conservative credit culture and disciplined underwriting practices are effective,
particularly during periods
of economic uncertainty.”
NBT
is a financial holding company
headquartered in Norwich,
NY,
that primarily operates through NBT
Bank, N.A., a full-service community bank with two divisions, and through
two
financial services companies. NBT Bank, N.A. has
121locations,
including 82NBT
Bank offices in upstate New Yorkand
39Pennstar
Bank offices in
northeastern Pennsylvania.
EPICAdvisors,
Inc., based in Rochester,
NY,
is a full-service 401(k) plan
recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville,
NY,
is a full-service insurance
agency. More information about NBT and its divisions can be found on
the Internet at: www.nbtbancorp.com,
www.nbtbank.com,
www.pennstarbank.com,
www.epic1st.com and
www.hathawayagency.com.
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Selected
Financial
Data (in thousands)
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2007
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|
|
Q4-2007 |
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|
Q3-2007 |
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|
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Q2-2007 |
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|
|
Q1-2007 |
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|
Q4-2006 |
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Net
Income
|
|
$ |
8,985 |
|
|
$ |
15,147 |
|
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$ |
12,064 |
|
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$ |
14,132 |
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$ |
13,648 |
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Average
Diluted Shares Outstanding
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|
|
32,398 |
|
|
|
32,921 |
|
|
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33,936 |
|
|
|
34,457 |
|
|
|
34,402 |
|
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Diluted
Earnings Per Share
|
|
|
0.28 |
|
|
|
0.46 |
|
|
|
0.36 |
|
|
|
0.41 |
|
|
|
0.40 |
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|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
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Net
Charge-Offs
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$ |
14,065 |
|
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$ |
7,038 |
|
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$ |
3,267 |
|
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$ |
2,129 |
|
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$ |
3,543 |
|
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Provision
for Loan and Lease Losses
|
|
|
13,440 |
|
|
|
4,788 |
|
|
|
9,770 |
|
|
|
2,096 |
|
|
|
3,484 |
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| |
|
|
|
|
|
|
|
|
|
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|
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|
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Allowance
for Loan and Lease Losses
|
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$ |
54,183 |
|
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$ |
54,808 |
|
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$ |
57,058 |
|
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$ |
50,554 |
|
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$ |
50,587 |
|
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Nonperforming
Loans
|
|
|
30,579 |
|
|
|
30,707 |
|
|
|
34,419 |
|
|
|
17,363 |
|
|
|
15,307 |
|
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Total
Loans and Leases
|
|
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3,455,851 |
|
|
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3,422,217 |
|
|
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3,432,300 |
|
|
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3,395,476 |
|
|
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3,412,654 |
|
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Past
Due Loans
|
|
|
25,914 |
|
|
|
24,044 |
|
|
|
29,332 |
|
|
|
28,497 |
|
|
|
28,409 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Allowance
for Loan and Lease Losses to Total Loans and Leases
|
|
|
1.57 |
% |
|
|
1.60 |
% |
|
|
1.66 |
% |
|
|
1.49 |
% |
|
|
1.48 |
% |
|
Allowance
for Loan and Lease Losses to Nonperforming Loans
|
|
|
177 |
% |
|
|
178 |
% |
|
|
166 |
% |
|
|
291 |
% |
|
|
330 |
% |
|
Past
Due Loans to Total Loans and Leases
|
|
|
0.75 |
% |
|
|
0.70 |
% |
|
|
0.85 |
% |
|
|
0.84 |
% |
|
|
0.83 |
% |
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Potential
Problem Loans
|
|
|
73,281 |
|
|
|
80,622 |
|
|
|
72,262 |
|
|
|
70,942 |
|
|
|
69,844 |
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Forward-Looking
Statements
This
news release contains
forward-looking statements. These forward-looking statements involve risks
and
uncertainties and are based on the beliefs and assumptions of the management
of
NBT Bancorp and its subsidiaries and on the information available to management
at the time that these statements were made. There are a number of factors,
many
of which are beyond NBT’s control, that could cause actual conditions, events or
results to differ significantly from those described in the forward-looking
statements. Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include, among others,
the
following possibilities: (1) competitive pressures among depository and other
financial institutions may increase significantly; (2) revenues may be lower
than expected; (3) changes in the interest rate environment may reduce interest
margins; (4) general economic conditions, either nationally or regionally,
may
be less favorable than expected, resulting in, among other things, a
deterioration in credit quality and/or a reduced demand for credit; (5)
legislative or regulatory changes, including changes in accounting standards
and
tax laws, may adversely affect the businesses in which NBT is engaged; (6)
competitors may have greater financial resources and develop products that
enable such competitors to compete more successfully than NBT; and (7) adverse
changes may occur in the securities markets or with respect to inflation.
Forward-looking statements speak only as of the date they are made. Except
as
required by law, NBT does not undertake to update forward-looking statements
to
reflect subsequent circumstances or events.